Software company facts for kids

A software company is a business that creates, sells, and helps people use computer programs, also known as software. These companies are a big part of the "software industry," which is all about making the digital tools we use every day, like apps, games, and operating systems.

What Kinds of Software Companies Are There?

There are many different types of software companies, each focusing on something special:

• Some companies sell ready-to-use software products that anyone can buy, like popular video games or office programs.
• Many companies create special software just for other businesses. This is called "custom software."
• Some companies offer "Software as a Service" (SaaS). This means you use their software over the internet, often by paying a monthly fee, instead of installing it on your computer. Think of online streaming services or cloud storage.
• Other companies make small parts of software, called "components," that other developers can use in their own programs.
• There are also "Independent Software Vendors" (ISVs). They build and sell software directly to people like you, whether it's for fun or for work.

Who Works at a Software Company?

Running a software company needs many different kinds of talented people working together. Sometimes, teams are even spread across different time zones! This can help them work almost 24 hours a day. For example, a testing team might be in a different country, finding bugs while the development team sleeps.

Most software companies have at least three main groups of people:

• Business analysts figure out what people or businesses need from software. They help decide what the software should do.
• Software developers (also called programmers) are the ones who write the actual code that makes the software work.
• Software testers check the software to make sure it works correctly and doesn't have any problems or "bugs."

In bigger software companies, you'll find even more specialized roles:

• Technical writers create all the instructions and guides for how to use the software.
• User experience (UX) designers make sure the software is easy and fun to use. They think about how people will interact with it.
• Graphic designers create the look and feel of the software, including buttons, menus, and colors.
• Maintenance engineers help fix problems and provide support after the software is released.
• Consultants help businesses set up and use complex software solutions.

How Software Companies Are Organized

The person in charge of a software development team is often called the Head of Development (HOD). They make sure all the teams work well together. Teams usually work best when they have around 10 people.

There are a couple of common ways software companies organize their teams:

Typical structure of a software company

• Classic Structure: In this setup, each team works on its own projects. It's simple because everyone reports to one boss. However, it can sometimes be harder for teams to share ideas or for people to work on different projects.

Matrix structure

• Matrix Structure: This is a bit more complex. People have two bosses: one for their special skill (like a manager for all developers) and another for the project they are working on. This helps the company use its people more efficiently, but sometimes it can lead to confusion about who to listen to first.

Many companies use a mix of these structures, or even create their own unique ways of organizing their teams.

How Software Is Made: Methodologies

Software companies use different methods, called "methodologies," to build software. These methods help them plan, create, and deliver products.

• Waterfall Model: This is like building a house step-by-step. You finish one stage (like planning) completely before moving to the next (like building).
• Agile Software Development: This method is more flexible. Teams work in short cycles, constantly getting feedback and making changes. It's great for projects where ideas might change often, like developing a new app. Two popular agile methods are Extreme Programming and SCRUM.

Some methods even combine ideas from both waterfall and agile to get the best of both worlds.

The Life of a Software Product

No matter which method a company uses, every software product goes through at least three main stages:

• Design: This is where teams plan what the software will do and how it will work. Business analysts and designers play a big role here.
• Coding: This is when the developers write the actual computer code.
• Testing: Testers check the software to find and fix any bugs or problems.

Ideally, each of these stages takes about 30% of the total time, with a little extra time saved for unexpected things.

How different groups interact in a software company

Even though each stage has a main group in charge, everyone works together throughout the whole process:

• Analysts make sure the software still meets the original needs, even if things change.
• Programmers help with the technical design and fix bugs found by testers.
• Testers create their test plans during the design phase and then use them during coding to find problems.

Tools and Procedures Software Companies Use

Software companies use many special tools and follow certain procedures to help them work efficiently:

For Business Analysts

• They use "modeling tools" to draw diagrams and plans for how the software should work.

For Programmers

• Version Control Systems: These tools help programmers keep track of all the changes they make to the code. It's like having a save history for every version of the software.
• Code analysis tools: These check the code for mistakes or to make sure it follows certain rules.

For Testers

• Bug tracking systems: These are like digital checklists where testers report bugs and track them until they are fixed.
• Test automation tools: These tools can automatically run tests, which saves a lot of time.

For Project Managers

• Project Management Systems: These help managers plan tasks, track progress, and make sure projects stay on schedule.

There are also "Application Lifecycle Management" (ALM) systems that combine many of these tools into one package, helping all the teams work together smoothly.

Checking How Well a Company Works

Good software companies often measure how well they are doing. They look at things like:

• How many bugs a developer creates over time.
• How many bugs testers find.
• How long it takes to fix all the bugs.
• How accurate their time estimates are for tasks.

Pyramid showing risk, time, and financial cost of introducing changes

Companies also try to reach a good level of "Capability Maturity Model" (CMM). This helps them improve their processes and make better software. Every company finds its own way to balance strict rules with creative freedom. They all understand that making changes late in a project can be very expensive and risky, as shown in the pyramid diagram.

See also

• List of the largest software companies